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In the case of 100 Investment Limited Partnership v. Columbia Town Center Title Co., the Maryland Court of Appeals was asked to determine whether a title company owed a tort duty of reasonable care to its customer, the purchaser of real property, when conducting a title search, notwithstanding any contractual obligation that may also exist. The Court ruled that, despite the fact that the title company – customer relationship derives from contract, an “intimate nexus” exists between the parties because of the foreseeability that the customer’s purpose for retaining the title company is to rely on its professional judgment. This intimate nexus justifies the imposition of a tort duty to exercise reasonable care in carrying out one’s professional services. In this regard, the Court of Appeals has decided that title companies should be treated similarly to lawyers, accountants, architects, and other professionals that have been found to owe their customers tort duties, in addition to those assumed by contract.Read more

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About The Authors

Brett A. Buckwalter is a Partner in the Litigation Department of Niles, Barton & Wilmer, LLP, with 15 years of experience practicing in insurance law, professional liability, general civil litigation, and employment law.

Rachel M. Severance is an Associate in the Litigation Department, concentrating in the areas of civil and commercial litigation, insurance coverage law, subrogation, and employment law in the state of Maryland.

Dalene A. Radcliffe is a Litigation Associate who concentrates her practice in civil and commercial litigation, insurance coverage, employment law, and construction law in the state of Maryland and the District of Columbia.

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